"Since our launch in late January, we are proud to have accomplished a lot in a very short period of time," said Braden Richter, CEO of LuxeYard. "In addition to our rapid membership growth, we have seen recent improvements in member quality and sales conversions, further indicating that we are on the right track with products that not only inspire, but also are priced to elicit a purchase."

Richter said the company's plan to discount its products heavily in the first quarter to attract new customers is paying off. He noted that total membership has grown to more than 600,000 and that more than $300,000 in sales orders were placed through the first quarter. Moreover, the percentage of members transacting has increased more than 250% since the introduction of its women's fashion vertical in March.

"To further bolster member transactions, we created the first social network to empower consumers to actively participate in product sourcing decisions," continued Richter. "With Concierge Buying, the power of social networking can now be monetized, representing one of the holy grails of e-commerce. This active participation should drive increased traffic to the site and more customer engagement, which we anticipate will translate to revenue growth."

Company Highlights:

Operations

In addition to the inaugural LuxeYard home furnishings and decor vertical, the company entered the fashion apparel business in March with the launch of women's apparel and accessories from both well-known and up-and-coming designer brands. LuxeYard also recruited several fashion Trendsetters who share their picks and opinions of the products they love, providing a fashion point of view from high profile celebrities and admired tastemakers;

The company launched its art vertical, creating a virtual gallery of curated one-of-a-kind and limited edition pieces from collections worldwide;

Today, LuxeYard announced its expansion into the men's apparel sector, featuring traditional designer and up-and-coming brands;

LuxeYard has formed an acquisition team to focus on consolidation opportunities in the flash-sale industry; recent related activities include the acquisition of the assets of privately held eOpulence, a premier online luxury fashion and lifestyle retailer, and an recent agreement to acquire LeatherGroups.com; and,

The company announced a strategic alliance with buyinvite, one of Australia's premier members-only private sale sites.

Financial

Reported results reflect the first quarter ended March 31, 2012. Comparable results to the first quarter of 2011 are not relevant as the company was a non-operating entity.

Gross revenue was $211,559, which after promotional discounts resulted in net revenue of $155,089, reflecting the period following the launch of LuxeYard.com on January 24, 2012; Operating expenses amounted to $2.1 million, primarily due to start-up costs, increase in personnel, advertising and marketing expenses;

The company reported a $6.29 million derivative loss from its outstanding warrants and the embedded conversion options in its convertible debentures;

Net loss amounted to $8.5 million, equal to $0.13 per share; and,

Pursuant to a private placement memorandum, LuxeYard closed a financing on April 24, 2012, whereby the company raised approximately $3.0 million.

Since February 13, 2012, LuxeYard's common stock has been traded on the OTC Market's OTCQB under the symbol LUXR.

About LuxeYardLuxeYard is a members-only flash sale site for luxury home furnishings, decor and fashion that offers access to unique products sourced by a seasoned team of buyers at a fraction of retail prices. LuxeYard is the pioneer of Concierge Buying, which gives members the power to determine what items will be sold on the site, and Group Buy which allows them to lower the price by sharing sale items with friends. Along with its veteran retail, e-commerce and digital marketing management team, LuxeYard partners with celebrity Trendsetters and design and fashion industry insiders to deliver a curated buying experience from a unique point of view to its members. To join the LuxeYard community, visit www.LuxeYard.com.

Forward-Looking StatementsThis press release contains forward-looking statements about our financial performance, which involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the factors included under the headings "Risk Factors" and "Cautionary Note Regarding Forward Looking Statements" on Form 8-K, filed with the Securities and Exchange Commission on November 15,2011, a copy of which may be obtained by visiting the SEC's web site at www.sec.gov. LuxeYard's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations.